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9.2 CONTRACTOR INITIATED MODIFICATIONS <br /> If latent or unforeseen conditions require modifications in the contract,the Contractor may propose <br /> changes by submitting a request for a change order to the City. Contractor shall use the change <br /> order request form approved by the City for said modification requests. The following MUST be <br /> • submitted/included by Contractor prior to any additional work being undertaken by Contractor; <br /> failing which the Contractor shall not be paid for the additional work: <br /> • A statement outlining reasons for the change and the effect of the change on the Work. <br /> Provide a complete description of the proposed change. Indicate the effect of the proposed <br /> change on the Contract Amount and the Contract Time. <br /> • A list of quantities of products required or eliminated and unit costs, with total amount of <br /> purchases and credits to be made. If requested, furnish survey data to substantiate <br /> quantities. <br /> • Indicate applicable taxes, delivery charges, equipment rental, and amounts of trade <br /> discounts. <br /> • Cost of labor and supervision directly attributable to the change. <br /> • Comply with any applicable product requirements if the proposed change requires <br /> substitution of one product or system for product or system specified. <br /> 9.3 ALLOWANCES <br /> Allowance Adjustment. To adjust allowance amounts, Contractor shall base each Change Order <br /> proposal on the difference between purchase amount and the allowance, multiplied by final <br /> measurement of work-in-place. If applicable, Contractor shall also include reasonable allowances <br /> for cutting losses, tolerances, mixing wastes, normal product imperfections, and similar margins. <br /> Contractor also agrees to the following conditions: <br /> • Include installation costs in purchase amount only where indicates as part of the <br /> allowance. <br /> • If requested, prepare explanation and documentation to substantiate distribution of <br /> overhead costs and other margins claimed. <br /> • Submit substantiation of a change in scope of work, if any, claimed in change orders <br /> related to unit-cost allowances. <br /> • The City reserves the right to establish the quantity of work-in-place by independent <br /> quantity survey, measure, or count. <br /> Contractor must submit claims for increased costs because of a change in scope or nature of the <br /> allowance described in the contract documents, whether for the purchase order amount or <br /> contractor's handling, labor, installation, overhead, and profit. Contractor shall submit claims <br /> within fourteen (14) days of receipt of the change order or construction change directive <br /> authorizing work to proceed. The City shall reject claims submitted later than fourteen (14) days <br /> after such authorization. Contractor also agrees to the following conditions: <br /> • Do not include Contractor's or subcontractor's indirect expense in the change order cost <br /> unless it is clearly shown that the nature or extent of work has changed from what could <br /> have been foreseen from information in the Contract Documents. <br /> • No change to Contractor's indirect expense is permitted for selection of higher or lower <br /> 9 <br />